AUD/USD clings to gains above mid-0.7900s, US jobs data in focus

The AUD/USD pair gained some fresh bullish traction on Friday and extended previous session's rebound from over one-week lows.

On Thursday, the pair dropped to the 0.7400 neighborhood following a big miss on Australian trade balance data and weaker China Caixin services PMI. The pair, however, managed to recover from lower levels amid some renewed US Dollar selling pressure on growing concerns over the US President Donald Trump's alleged links with Russia. 

The pair continued gaining traction through Asian session on Friday and was seen benefitting from a slightly better-than-expected release of Australian retail sales figure, which helped negate RBA's concerns over risks associated with stronger domestic currency.

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Investors' focus on Friday would remain glued to the keenly watched NFP report, due for release later during early NA session. Against the backdrop of prevalent higher bearish sentiment surrounding the greenback, a surprisingly strong data might potentially trigger a strong US Dollar short squeeze and pave way for extension of the pair's near-term corrective slide from near 26-month highs touched earlier this week. 

Technical levels to watch

Immediate support is now pegged near the 0.7945-40 region, below which the pair might aim towards testing the 0.7900 handle before eventually dropping to 0.7875 horizontal support. On the upside, any further up-move is likely to confront some fresh supply near the key 0.80 psychological mark, which if cleared could assist the pair to head back towards retesting multi-month highs resistance near 0.8065 level.